Transcripts For CSPAN2 Hearing On Privatized Military Housin

In the Natural Resources committee, he will be so long shortly. Mr. Scott will stay on in for him. We will pick up with him later. I will read a stigma. A. Before we get started, unanimous consent that a member of the committee, be allowed to join us, mr. Brown who is behind me, and to participate in the questions and there is a formal ask unanimous consent that we allow him to participate in todays hearing after all of the subCommittee Members have had an opportunity to ask questions. Is there an objection. There being none. The nuns of kim subcommittee member is recognized at an appropriate time for fiveminute questions. And more okay with that, kemeny will come to order. Ladies and gentlemen, i call the committee to order and assent many in the Armed Services Committee Presents february of this year, the subcommittee has been conducting oversight of the privatized military housing program. We first heard about this systemic failures in the privatized military Family Housing program from a panel of courageous military spouses who provided graphic and disturbing testimony about lead and mold exposure and rodent infestations, rude and dismissive House Management in an effective oversight of the program by the services. And then we heard from the assistant military Service Secretaries im their efforts to address the failures of oversight that led to the privatized military housing crisis. In the plans of the services to continue to make improvements. It today we will hear from five of the private military Housing Partners and from their perspectives. And importantly, their plans for bringing Family Housing back to the loophole our military families deserve it i also want to make one thing clear. While we do not have all of the privatized military Housing Partners president today, that in no way means that those who are not here, car off the hook. We are watching them, we expect him to do right by the military families that they provided genesis two. Our oversight of this issue will continue. And we are watching not only does who are here but those were not. Ive heard troubling reports about michaels organization. Its the clark realty capital. In particular concerned by reports about the abuse abuse and nondisclosure agreements. For all of the Housing Partners, whether you are here today or not, im putting all of you will notice that this committee will be watching and will not tolerate in any way the abusive and problems that weve seen. It is deeply troubling. And deborah, this committee and many of our members, still are here from concerned military families who continue to struggle with getting quality resolution of the maintenance concerns. And some of the unprofessional Property Management staff. There is marked yet to be done and will continue to follow up im these issues until they are resolved as satisfaction of the military families and this committee. One of the themes that has permeated, our discussions about Privatized Housing is the issue of ineffective management particularly at the insulation loophole. The symptoms of this problem have taken many forms. Including disrespectful Customer Service personnel inexperienced maintenance teams, performing lowquality maintenance. And negative consequences consulting from wrong incentives. Initiatives are to be addressed. Daytoday management is within the purview of the private partners, im interested in hearing what you have to see about what you are doing change the culture at the insulation loophole free as military services have recommitted to oversight rules. They are working to improve the processes and refining the metrics used to measure the performance of each housing project. Im looking forward to hearing from our Witnesses Today to which the degree they were cooperating with these initiatives and the steps that they are taking to ensure that the Housing Enterprises as transparent as possible. Counterproductive practices such as tilting Maintenance Work orders before the problems are resolved, in order to artificially ulcer closures to district or asking tenants to sign nondisclosure agreements as a matter of routine join they move out of the unit by simply not acceptable. All of youve had enough time to access and screen is the problem. As we move into 2020, the focus must be in action. Not only must corrective policies and processes we must develop mechanisms sustainment positive changes to ensure our families receive high quality housing. In gaza where they live. Master Service Members and their families to sacrifice enough in service to the country. We will not accept substandard housing as well, these families deserve better and this committee will demand to get the best. Thank you so very much. You will be just as satisfied, that we are here. Thank you for having this hearing. The giver everyone in the audience showing your concern. They will hear testimony from private companies that make the privatized military Family Housing mold model work. As someone who is district to almost 40000 military members, like the chairman, i am also deeply troubled by the lack of oversight in this program and im military families deserve better. Our committee has earned significant concerns about insufficient mold remediation and terrible Customer Service and numerous numerous Mcdill Air Force base florida and not going to address them today but theres been allegations of fraud in a few extreme cases. According to a survey released earlier this year 63 percent of respondents who live in my district, said the units need better maintenance, repairs or remediation. Committee has heard our stories about mold rat infestation and poor Customer Service. The military Housing Privatization initiative began as publicprivate ventures or ppv news, 1996 as means to modernize Family Housing and improve efficiency, and will reserve accounts for future investments. Oversight of the program is challenging because each military department manages their programs differently and the prospective projects are governed by you make legal agreements. The army has 25 projects, navy and marine as 32. Further complicating the projects they are partners with limited liabilities. My hope is that this is a wakeup call. We need this model to work. But not at the expense of the military families. Every dollar wasted through this mismanagement or incompetence, diminishes the longterm viability of the reserve accounts. That are vital for future recapitalization. The house and senate both past significant Bipartisan Legislation and the defense bill this year. And i forward to enacting meaningful performs. First and foremost among these will be a tenants bill of rights. The military department have an inherent responsibility to provide oversight for these projects. A recent ig report found quote from a soup misperception that join housing was privatized, it was effectively outsourced. Leaders at many levels do not actively engage as they might have im other issues based upon misunderstanding of their authorities. Weve heard that some commanders characterize the government as the weaker 49 percent partner in these housing agreements. Applying that they have limited means to address shortcomings. Oversight is inherently governmental and its not optional. Im some installations, there is confusion regarding the identity of the insulation Housing Office in the office of the housing partner or Third Party Management company it should be Crystal Clear to a family whether they are speaking to someone representing the insulation commander, or to a rep. Of the housing partner. And we must simultaneously reform while preserving the financial putting of the right housing project. 2018 highlighted and found that the military departments in the extent to which they used to measure the future sustainment needs and funding to assess project sustainability. Im beginning to question the wisdom of the fiscal wonderful and why the recapitalization cancer paid only after the holders are paid. I look forward to hearing more from her witnesses, actions they have taken to address health and safety concerns and also Customer Service. It would also appreciate their thoughts im the program overall. Thank you it is been good to work with you im this problem we will continue to do so. And i like to welcome our witnesses. Mr. John, ceo of corbis, mr. John, president of hunted military communities, mr. Dennis hickey, ceo of lend lease, in america. Mr. Taylor president facility operations renovations construction for beatty, mr mr. Lewis, president of lincoln Family Housing. Jolynn you are a formal testimony will be put into the hearing record. In the interest of time, which are unfortunately limited today because most will occur sometime after two perhaps hopefully as late as 230. Ask you to limit your testimony and summarize the three minutes. So start. My apologies for the pronunciations. Thank you mr. Chairman, Ranking Member and members of the committee thank you for the opportunity to appear before you today. My name is john. I am the founder and ceo of corbis. I am here im behalf of 950 dedicated team members who support our Service Members and their families. Many of our employees are veterans, or discusses of active duty military members. Talented people are generally committed to supporting those who protect and defend our nation. It is my honor to serve in this capacity. Join i was first introduced to massive challenge facing the department of defense with a struggling housing. I was moved by how poorly we were caring for military. India and he was committed a real longterm solution. With our experience, and believed we were wellsuited to help. Join i founded our company some 20 years ago, we set out to create something that convicts the housing challenges and facing our military. After 911, a very important job became a mutation. One is less and hell never work im. No uncertain terms, i apologize for the issues and some of the residents were dealing with. I said we would do whatever it takes to do right by all of her residence. Today one tell you, a few of the things weve done since i apologize nearly ten months ago. Sincerely and torn 1900 weve been making changes and a concerted effort to get back to the Gold Standard. It will be known join we have deployed Service Members were able to speak to their families about their daily lives, was having a school, not about the problems they are experiencing within the housing. Will know that weve achieved the Gold Standard join our residents talk about corbis and the things that they are doing at events, strong sense of community and a team that has helped create a better leaving environment. With that in mind, we neighbored the added neighborhood staff, we moved our call centers back onto the installations so that the residents talk somebody right down the street as opposed to a central call station. Once the corneas station so that residents can use their smart phone or laptop to Place Service calls track progress and let us know if he got the job done right. Reestablish or incident advocate to work for those families with more challenging issues and from the early days of the pa program, is well understood that to give our servicemembers the homes they deserve, the program need it to operate in a consistent state of development, construction and financing. Solving the housing challenges is always been based im the regular investment homes building new homes will maintaining homes both new and old. An investment in these homes is an investment in the Service Member. That is why we have injected new her name into the program through 25 million of practic capital tran19 and hundred 50 million for 2024 also putting close to 200 million worth from our partnership preserves. To finance a 7 million at no cost to the government. These business will be used to place for completely of great some the most challenging out maintain. More than 16000 homes were brought up to a Higher Energy center like new heating, air conditioning systems, and give residents a better Home Experience while setting the program nearly 300 million over the course of the next 30 years. And to someone is been in the program for nearly 20 years, i can see from personal express that the homes that we inherited, or in terrible and in many cases uninhabitable. Through the program, we were able to upgrade or replace thousands of older homes in the early years. However, to date, 46 percent of our homes and military portfolio were built before 1980 and some as old as 1870. As we looked into the future, theres a lot to be encouraged about in some real challenges as well. The priority is to deliver both gendered Resident Service and older homes that cost more each year to maintain, and drive constant investment in new homes and renovations. Orpheus will continue to work tirelessly for our families and keep innovating and finding new answers to get servicemembers homes they deserve. We are proud to serve our military women and men as we believe there is no higher calling in our industry. I say you for this time and i look forward to your questions. Thank you. Good afternoon. My name is john hale and i am president of hunt military communities. Thank you for the opportunity to be here. And, we are just to build Quality Community for americas heroes. We take that responsibility very seriously. During the Senate Hearings in february, it became obvious to us that the work families leaving in our homes whose voices were not being heard. Lesser trust and were sorry or do we want to get right. Weve heard her residence lawn care and we are singularly focused im refilling our trust in us in improving their leaving experience. Other the past, weve been working diligently im the front. First, we recognize the Quality Homes Resident Services depends upon opening regular communications with the residents. We need to hear from all of our military families in order to address their issues. We mayday number of improvements to make it easier for residents to communicate with us. In addition, we understand that maintenance is the critical part of providing Quality Homes. In early share, it became clear to us that we had some substantial room for improvement. All maintenance issues inevitably arise, our goal is to provide professional and transparent and timely service. In the last year, weve enhanced maintenance processes, and keep positions and improve training. Finally, we are actively supporting reforms to ensure the longterm success of the program. We are by no means perfect, and there have been times where performances have fallen short of our residences into patients. We are committed to taking the necessary actions to rebuild trust between her residence. With a progress of the past year that her work is far from done. Thank you for the opportunity to testify today i look forward to hearing your questions here you thousand and three questions. Thank you. My name is dennis hickey, chief executive of lenox america. Is the partner of the departme department. Put your microphone . Sorry. Proud partner of the department of defense and we have the privilege of overseeing 40000 homes that contain over a hundred and 3000 people who call it their home. Mr. Chairman, issues being discussed are here are critical for me personally. No family, much less military family should be subjected to leaving in standards or substandard Housing Conditions. We apologize for anything that weve because in this instance. We are proud of the work that we do to care for military families however we realize we have more work to do and continually improve. As an example, join we purchased over 400,000 Service Hours we processed approximately 25000 Service Orders across homes. 97 percent of these orders were successfully done im time and function. We say this is the good result and we are proud of that. However, it does mean that 3 percent, or not effectively process im time. And that is the big issue. So mr. Chairman and members of the committee, that 3 percent is my focus. What can we do to get that number down. Equity air of these families more quickly and more effectively than we currently are. In order to improve our performance we recently taken the following steps. Her seafoam significantly increased focus im Customer Service. Weve added new staff and suppliers and new contractors and instituted new training modules to train our staff. For example weve instituted the Maintenance Academy to order. Smart phone apps as well. This contains a volume of information easily accessible to residents, including the ability for them to initiate and track service requests. Use of this app has doubled in the last six months across our communities. Their live weve introduced the mold inhibiting protocols for these include new mold techniques enhance filter protection seven was ventilation systems and other initiatives. We are continuing to invest in technology to improve all aspects of our business. Modules and of improved sorceress, gre